Bharatiya Mahila Bank Merger With SBI

The Competition Commission of India has approved the amalgamation of Bharatiya Mahila Bank into State Bank of India (SBI).

Both the banks offer various banking products to their retail and corporate customers.

However, while SBI has made deep inroads into the interiors of the country, Bharatiya Mahila Bank has only token presence with four to five branches in each State.

Background:

The merger of five associate banks and Bhartiya Mahila Bank (BMBL) with State Bank of India (SBI) will create a much bigger entity in the Indian banking sector and will enable the giant to make one step closer to the list of among the top global banks.

Kicking off the process, in April 2016, the boards of State Bank of Bikaner & Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), the unlisted State Bank of Hyderabad (SBH), State Bank of Patiala (SBP) and Bharatiya Mahila Bank approved the scheme of merger with State Bank of India.

As per the merger proposal, SBBJ shareholders will get 28 shares of SBI (Rs 1 each) for every 10 shares (Rs 10 each). Similarly, SBM and SBT shareholders will get 22 shares of SBI for every 10 shares. In the case of Bharatiya Mahila Bank, 4,42,31,510 shares of SBI will be swapped for every 100 crore of Rs 10 each.

With merger of all the five associates and BMBL, SBI will have an asset base of Rs 37 trillion (Rs 37 lakh crore) or over $555 billion, with 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.